Shibarium Suffers 95% Drop in DeFi Activity Amid Shiba Inu Price Rally

Shiba Inu's layer 2 network, Shibarium, has seen its decentralized finance (DeFi) activity plummet over the past week. According to data from DeFiLlama, the DEX volume on Shibarium dropped by a staggering 95% in just seven days, settling at $72 as of Wednesday, July 29.

This massive decline in trading activity suggests that users are barely interacting with decentralized applications and swapping assets on the network. The data indicates that ShibaSwap is the only protocol showing some level of activity, accounting for all $72 in DEX volume recorded this week.

The lackluster performance on Shibarium comes as a surprise given the recent price surge of Shiba Inu, which saw its price increase by over 35% in just one day. However, this rally was short-lived, and traders may be exercising caution after the price fizzle.